Through an unusual trans-Atlantic financing arrangement, mobile satellite service (MSS) network operator Globalstar announced Wednesday that it had secured a guarantee from French export credit agency COFACE for a proposed U.S. $574 million credit facility that would enable Globalstar to acquire and launch second-generation satellites to replace its aging fleet of MSS spacecraft. Carrying an annual interest rate of 6.3%, the loan would be provided by a syndicate of four French banks and would finance at least half of four dozen satellites that Globalstar had ordered from French aerospace manufacturer Thales in 2006. (Thermo Funding Company, LLC, the holder of an 81% equity stake in Globalstar, provided an additional $200 million in funding in 2006 to help pay for the satellite package.) The financing agreement would also cover the services of launch firm Arianespace, which has been contracted to deploy the satellites into orbit. Upon closing, secured term and revolving credit loans provided to Globalstar by Thermo would be converted into equity, and Globalstar would receive an additional $100 million in equity funding from Thermo. Asserting that the deal “will provide us with the resources needed to deliver an industry leading, high quality mobile satellite service for the foreseeable future,” Globalstar CEO Jay Monroe predicted that the proposed credit facility “will solidify our longterm leadership position in the [MSS] industry.”